AdviceIQ Articles

  • A Simple Way to Shrink Taxes

    After tax season, when they realize exactly how much tax they paid at home, a number of my friends, colleagues and clients asked me what they should do to reduce their taxes next year. While I’m not a tax professional, I certainly pay attention to tax rules and rates regarding investing.

    My short answer to their question was – create a portfolio of low-fee, thoughtfully constructed stock index mutual funds or exchange-traded funds. Yet not all of them do the job for you. Here’s how to find the right one.

  • Don’t Understand an Advisor?

    What if you don’t understand what your financial advisor tells you? When the advisor uses abstruse (to you) financial or legal terms, you’re left in the dark. That is obviously not good for you in planning your finances. Here’s how to get clarity on the advice you hear, and pay for.

    One of my staff members several years ago drove the communications problem home to me with this useful bit of advice: “Rick, your clients don’t understand half as much about investing as you think they do.”

  • How to Be Independent

    The major objective in comprehensive wealth planning is financial independence. But true independence in life means not only good finances, but health and relationships.

  • Is the Market Overvalued?

    You keep hearing that, because stock market valuations are so high lately, that a downturn is imminent. But this is not necessarily the case. The often-used P/E ratio, which measures valuations and now is on the high side, is not always the best market bellwether.

    It’s likely you’ve seen some version of this headline, and wondered what truth it holds:  “Stock Market’s High Suggests Lower Returns AheadForbes, June 18.

  • Amid Chaos, Invest for Income

    Fighting again in the Middle East, oil prices and Wall Street volatile and apparently you need life insurance to fly certain airlines: In what seem scary times to invest, how do you cut through the clutter of panicky, short-term and just plain bad money strategies?

    Everyone wants a strategy that builds confidence about investing – especially when everyone seems to be holding their breath. My answer: income investing, a way to generate consistent cash flow from your liquid investments.

  • Advisors: Plans, Not Fads

    Will you ever stop underperforming your own investments? The rollercoaster market naturally spurs you to chase trends and lose sight of what you really ought to do: Stick to a well-advised plan of long-term payoffs and goals.

  • Bargains Amid Downturns

    Periodic dips in the stock market grab investors’ attention and fuel anxiety. Here’s why long-term investors should not worry, and instead see opportunity. Market downturns are times to buy good bargain stocks.

    Think back to early March 2009, the low point after the crash. America was on sale. If you bought stocks then, when they were cheap, you more than doubled your money as of now.

  • Families and College Costs

    Planning to afford increasingly costly higher education should be a family affair. Together, parents and their high school-age youngsters must figure out ahead of time how to find the money and spend it. This can be a tricky proposition.

    Now is a good point to start thinking about this. Summer is passing by and once again, students are headed back to class. Some teens change buildings, some finish their high school careers and all face big questions about their future.

  • Winning by Losing Less

    To reach your financial goals, you don’t have to outperform every benchmark every year. For long-term investors, avoiding and mitigating losses is a key factor in achieving ultimate success in your portfolio.

  • Is a Market Bubble in Sight?

    In a bubble, investors believe assets’ value can move in only one direction. They’re usually right – just not about which direction. Long-running gains in U.S. stocks, despite sharp daily dips over this summer, inspire some market watchers to use the B-word again.

    Is the equity market in or approaching a bubble?

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